Breakaway Solutions, the Dublin-based multinational developer of e-business software, will cut 170 jobs as part of a global restructuring.
Some 17 staff at the company's Dublin operation will lose their jobs although the centre will continue to act as the firm's European solutions centre.
The job cuts were announced amid a worldwide slump in demand for e-business products.
Breakaway had warned that its fourth-quarter results would not meet expectations and has already shed about 90 staff. Its share price, which closed up three cents at $1.16 last night, is a fraction of its year high of $85.
This is bad news for the local management, who sold the Irish-owned start-up firm Zartis to Breakaway Solutions in July last year for $18 million in a majority stock deal.
The core team of 20-somethings, led by managing director Mr John Dennehy, netted at least two-thirds of the sale price in Breakaway stock, which is vested over four years.
Former Zartis management, who will have seen their paper worth decline dramatically over the past six months, include Mr John Dennehy, Ms Dervla Cunningham, Mr Keith Davey, Mr Martin Casey and Mr Ultan Leahy.
The immediate crisis facing Breakaway may have passed however as the firm announced that it had secured a capital investment of $33 million from SCP Private Equity Partners and Internet Capital group.
The firm said yesterday the cost-cutting programme together with the investment was designed to drive the company towards profitability over a reduced timeframe.
